XML 26 R15.htm IDEA: XBRL DOCUMENT v3.20.2
Income Taxes
9 Months Ended
Aug. 01, 2020
Income Tax Disclosure [Abstract]  
Income Taxes INCOME TAXES
On December 2, 2019, the U.S. Department of the Treasury released final regulations and proposed regulations under Section 59A of the Internal Revenue Code, the Base Erosion and Anti-Abuse Tax (“BEAT”). BEAT, which requires certain U.S. corporations to pay a minimum tax associated with deductible payments to non-U.S. related parties, was enacted as part of the Tax Cuts and Jobs Act (the “Tax Act”). Also, on December 2, 2019, the U.S. Department of the Treasury released final regulations that provide additional guidance with respect to the foreign tax credit regime under the Tax Act.

The effective tax rate for the third quarter and nine months ended August 1, 2020 was lower than the effective tax rate for the third quarter and nine months ended August 3, 2019, primarily due to reduced BEAT and the effect of the final regulations released on December 2, 2019.
Our future income tax provisions and deferred tax balances may be affected by the amount of pre-tax income, the jurisdictions where it is earned, the existence and utilizability of tax attributes and changes in tax laws. Ciena continues to monitor these items and will adopt strategies to address their impact as appropriate.